Social Security, pension and labor regulations - Law 4997/2022

Law 4997/2022 was published on 25.11.2022 and incorporates in the Greek legal system new regulations concerning the Greek social security, pension and labor legislation.

The points of particular interest as included in this legislative text are as follows:

• Statute of limitation regarding Social Security Contributions: According to article 6, the requirements of the e-E.F.K.A. and the bodies that are part of it, are subject to a ten-year statute of limitations starting from the first day of the following year in which the insurable work or service was provided, regardless of the time in which these claims were asserted. After 01.01.2026 the statute of limitations for claims will be five years.

• Permanent reduction of social security contributions: According to article 5, as of January 1, 2023, the deductions of salaried employees in favor of Public Employment Service, which are contributed by the e-EFKA along with employers' and employees’ social security contributions, are permanently set at the reduced rates provided for by article 48 of Law 4670/2020, article 31 of Law 4756/2020 and article 81 of Law 4826/2021 at the following levels : a) for Unemployment at a rate of 2.40%, which is distributed by 1.2% to the employer and by 1.2% to the employee, b) for the Employer's Insolvency Protection Account, at a rate of 0.15 % on the wages that concerns employer contribution, c) for contribution on the Single Account for the Implementation of Social Policies, at a rate of 0.16% on wages, which is distributed by 0.06% to the employer and by 0.10% to the employee and d) contribution in favor of the former Labor Home Organization, at a rate of 0.35% of the employee's wages. Thus, indicatively for the office worker coverage package (101), the social security contribution rates continue to be 13.87% for the employee and 22.29% for the employer.

• Settlement of debts to the Social Security Funds: According to article 7, overdue debts to the e-E.F.K.A. and the other social security funds may, upon request of the debtors, be regulated and paid in 2 to 24 equal monthly installments or up to 48 equal monthly installments, as long as (in the latter option) these are debts that are confirmed following an audit. The minimum amount of the monthly installment is at least 50 euros.

• Incentives for converting part – time employment contracts to full time employment contracts –Social Security Contributions subsidy: In accordance with article 9, a program to subsidize social security contributions is established for all private sector companies, from 01.01.2023 to 31.12.2023, who convert part-time salaried workers' employment contracts to full-time employment contracts. The social security contributions of the employee and the employer are subsidized by 40% from the state budget for a period of one year, starting from the first day of the conversion. This program applies to all businesses, regardless of legal form, which:
  • until 09.09.2022 employ salaried workers with a part-time employment contract at a rate of more than 50% of their workforce.
    
    
  • they are tax and insurance aware throughout the program
    
    
  • maintain on average the same number of employees over the period of one year

• Extension of Special Maternity Protection Leave: (six months OAED leave): According to article 43, the special maternity protection leave provided for covered mothers (including those who have had a child through surrogate motherhood and adoption up to the age of 8) is extended from 6 to 9 months of a child) of the IKA – ETAM. During the leave, the OAED is obliged to pay the working mother a monthly amount equal to the minimum wage, as well as a proportion of holiday gifts and leave allowance. The mother is entitled to transfer up to seven months of this leave to the father, as long as the latter is employed full-time or part-time.

• ERGANI submissions: In PS ERGANI II, data for the calculation of Annual Work Units (AMU) are submitted in digital format. Specifically, data relating to:
  • employees employed in an entity with a dependent employment relationship
    
    
  • persons whose employment is assimilated to a salaried employment relationship
    
    
  • other categories of employees in an entity

• Daily Employment Program of Safety Technician and Occupational Doctor: Employers must submit to PS ERGANI II, before its start, the exact starting and ending times of the daily employment of the occupational doctor and the safety technician. Compliance with the above obligation will be checked through the digital work card.

• Prohibition of Discrimination against HIV-Positive Employees: According to article 47, any form of discrimination, direct or indirect, is prohibited in terms of terms, conditions of employment and work, promotions, as well as the design and implementation of personnel evaluation systems, related to the person's status as HIV positive.